SpiceJet will pass on ATF burden to consumers: CEO

Low fare carrier SpiceJet has said that it can't absorb the recent 7.6% hike in aviation turbine fuel and hence will pass on the burden to consumers said Neil Mills, the airline's CEO. This means passengers will have to brace a hike in fares.

Oil marketing companies have recently hiked ATF price to an all-time high of Rs 72,282 per kilolitre.
In an interview to CNBC-TV18, Mills said that the airline has seen margins being impacted by 7% after the latest hike. The airline had spent Rs 2,200 crore toward ATF purchase in FY11.
He also express concern on the delay in the Cabinet approval of foreign direct investment(FDI) in the sector and said that PE players are cautious about Indian aviation right now.
"We are in talks with 2-3 PE players and the funds we raise will be used to retire existing debt," he said.
He also pointed out the recent 342% hike in airport development fee (ADF) at the Delhi airport is unprecedented.
Talking about the airline's growth prospects, he said that he sees atleast 25% growth in FY13 due to domestic and international expansion.